Finding The Right IRS Payment Options
Paying your taxes isn’t always as simple as we’d want it to be. If you find yourself in a place of financial hardship, especially if you’re self-employed or heavily in debt, it can be difficult to muster up the funds to pay back the taxman for your year’s worth of earnings. The good news is that we can help. Here at Benner & Weinkauf, we’ve spent nearly two decades working alongside the IRS to find the best methods of resolutions for our clients. You shouldn’t have to risk penalties and other inconveniences just because you couldn’t pay your full amount on time. With our experience by your side, we’ll find the best methods of payment that works for you and your financial situation.
Oftentimes, They’ll Work With You
The IRS is willing to find a common ground that works best for you. If they can see that you’re making an effort and not trying to avoid payment altogether, they will allow you to enter certain types of payment programs. If your financial situation is such that you can’t pay altogether because you filed bankruptcy or are in the middle of some other mitigating set of circumstances, they will take that into consideration as well. More times than not, if you aren’t able to pay the amount by the due date, they will begin charging you interest and a monthly late payment penalty. We can work to see to it that this amount is less than it would normally be by figuring out the best payment option for your situation.
Full payment agreements are just one way which can help you figure out your tax debts. The IRS will allow up to 120 days for your payment to be made in full, during which time you will still accrue these penalties and late fees. Perhaps the best option would an installment agreement. These allow you to pay gradually as you go through your life. These include direct debit from your bank account, payroll deduction from your employer, payment via the Electronic Federal Tax Payment System (EFTPS), payment by credit card via phone or Internet, payment via check or money order, or payment with cash at a retail partner. Whichever one works best for you, we will see to it that it effectively stops any sort of harassment from tax debt collectors once your paid off.
Room For Compromises
If the amount is simply too much, there are several different compromises that can help. If it’s simply unreasonable for your income, then an offer in compromise can be made that effectively lowers the amount to an agreed upon total that can be paid. If you can’t pay the full amount because it will irreversibly affect your ability to cover your basic living expenses, then we can arrange for a temporary delay collection where it will be postponed until a later time that your situation improves. By reporting your account as “currently not collectible” until your finances improve, it will give you some much needed wiggle room. However, being currently not collectible doesn’t mean the debt goes away. It just means that the IRS is allowing you to pay it back later. Even so, penalties and interest continue to accrue until you’ve fully paid your balance.
The first step should be contacting a secure legal team that can find the best course of action that works for you. Whatever tax-related troubles you may be facing, the professionals at Benner & Weinkauf will be here to help. Give us a call today.